Key Takeaways
- • Global private equity and venture capital deal value surged 24.7% year-over-year in 2024 to US$639 billion, driven by rising valuations, according to S&P Global Market Intelligence data released January 14, 2025.
- • Deal volume declined 6.5% despite the value increase, signaling fewer but larger transactions; fundraising activity rose 9% to US$283.7 billion but transaction volume fell on that side of the market.
- • 2024 deal values remained substantially below historical peaks—down 13% from 2022 (US$735 billion) and down 45% from 2021 (US$1.17 trillion), indicating the market has not fully recovered to pre-pandemic levels.
- • PE and VC transactions reached their highest share of overall M&A activity since 2019 at 17%, with the U.S. and Canada leading by deal value and Europe leading by deal volume.
- • The energy sector experienced the most dramatic growth with a sixfold year-over-year increase in PE deals totaling US$346 million, primarily driven by increased power demands from artificial intelligence infrastructure; utilities led PE-backed M&A with US$606.4 million in deal value.
Summary
Global private equity and venture capital activity rebounded meaningfully in 2024, with deal values rising 24.7% to US$639 billion from the prior year, according to newly released data from S&P Global Market Intelligence. This rebound represents a notable recovery from two consecutive down years, though the absolute values remain well below the market's recent historical peaks. The surge was primarily driven by rising valuations rather than transaction volume—deal count actually declined approximately 6.5% year-over-year, suggesting the market is consolidating around fewer, larger transactions.
Fundraising activity similarly showed signs of recovery, increasing 9% in value to US$283.7 billion in 2024, though transaction volume on the fundraising side also contracted. These figures, however, mask the magnitude of the decline from prior cycles: 2024 fundraising fell short of 2022 levels (US$415.3 billion) and remained substantially below the US$663.85 billion deployed in 2021. The 2024 deal value of US$639 billion likewise represents a 13% decline from 2022 and a 45% shortfall from 2021's US$1.17 trillion, underscoring that despite the year-over-year recovery, the market has not yet returned to pre-pandemic deployment levels.
One significant market indicator emerged in 2024: PE and VC transactions accounted for 17% of overall M&A activity, marking the highest share since 2019. This metric suggests alternative asset managers are gaining relative prominence within the broader M&A ecosystem. Geographic distribution showed the U.S. and Canada leading by deal value, while Europe dominated by transaction volume, indicating regional variations in deal sizing and strategy.
Sector-level dynamics revealed sharp divergence, with the energy sector posting the most dramatic gains. PE deals in energy totaled US$346 million, representing a sixfold increase year-over-year and likely reflecting investor appetite for infrastructure supporting artificial intelligence's expanding power requirements. The utilities sector emerged as the leading PE-backed M&A category with US$606.4 million in deal value, positioning essential infrastructure as a sustained focus for alternative capital allocators navigating the transition toward AI-driven energy demand.
Fundraising activity similarly showed signs of recovery, increasing 9% in value to US$283.7 billion in 2024, though transaction volume on the fundraising side also contracted. These figures, however, mask the magnitude of the decline from prior cycles: 2024 fundraising fell short of 2022 levels (US$415.3 billion) and remained substantially below the US$663.85 billion deployed in 2021. The 2024 deal value of US$639 billion likewise represents a 13% decline from 2022 and a 45% shortfall from 2021's US$1.17 trillion, underscoring that despite the year-over-year recovery, the market has not yet returned to pre-pandemic deployment levels.
One significant market indicator emerged in 2024: PE and VC transactions accounted for 17% of overall M&A activity, marking the highest share since 2019. This metric suggests alternative asset managers are gaining relative prominence within the broader M&A ecosystem. Geographic distribution showed the U.S. and Canada leading by deal value, while Europe dominated by transaction volume, indicating regional variations in deal sizing and strategy.
Sector-level dynamics revealed sharp divergence, with the energy sector posting the most dramatic gains. PE deals in energy totaled US$346 million, representing a sixfold increase year-over-year and likely reflecting investor appetite for infrastructure supporting artificial intelligence's expanding power requirements. The utilities sector emerged as the leading PE-backed M&A category with US$606.4 million in deal value, positioning essential infrastructure as a sustained focus for alternative capital allocators navigating the transition toward AI-driven energy demand.
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